Saudi Arabia fines 16 banks, including UAE bank

Saudi Arabia fines 16 banks, including UAE bank

Dubai - The banks were fined for violating the "individual responsible finance principles" to implement principles of justice.



By Waheed Abbas

Published: Mon 20 May 2019, 8:02 AM

Last updated: Mon 20 May 2019, 4:03 PM

Saudi Arabia's central bank on Sunday fined 16 banks, including a UAE bank and some of Kingdom's largest banks, for violating its laws and asked all the lenders to correct the violations.
The Saudi Arabian Monetary Authority (Sama) said the banks were fined for violating the "individual responsible finance principles" to implement principles of justice and transparency and to ensure full compliance with the responsible finance that should meet with the actual needs of all the segments of the society.
The regulator said the decision will also ensure fairness and competitiveness of financiers and to maintain efficiency of procedures and mechanism in this regard. However, it didn't disclose details of the fines.
The banks that were fined by Sama are Al Rajhi Bank, Al Ahli Bank, Saudi Fransi Bank, Al Riyad Bank, Al Jazira Bank, Emirates NBD, Alinma Bank, Saudi Home Loans, Dar Al Tamleek, Abdulalatif Jameel Finance, Saudi Fransi for Finance, Nayifat Finance Company, Flexible Murabaha Finance, Al-Jabr Financing Company, and Raya Financing Company.
Emirates NBD, Dubai's largest bank, registered 15 per cent growth in Q1 2019 net profit, reaching Dh2.7 billion on the back of higher income and improved margins. Total Income of Dh4.7 billion improved 15 per cent year-on-year due to loan growth, an improvement in margins and higher fee income.
In November last year, Emirates NBD opened second branch in Riyadh, taking its total network to four branches in the Kingdom. It is the largest geographical presence of the bank outside the UAE and Egypt. It also has offices in India, Singapore and the UK and representative offices in China and Indonesia.
The bank provides a full offering to Saudi-based individual and businesses, including retail, private, business and wholesale banking.
"Our significant and growing network is a reflection of our commitment to The Kingdom of Saudi Arabia and support for Vision 2030. Building on the strong economic and trade ties between Saudi Arabia and the UAE, we hope to continue to serve and support the economic ambitions of Saudi individuals and businesses as the Kingdom forges ahead in its plans for economic transformation," Hesham Abdulla Al Qassim, vice-chairman and managing director of Emirates NBD, had said at the opening of the second branch in Riyadh.
"Sama calls upon the financial institutions under its supervision to fully comply with regulations and instructions, in a manner that does not affect the rights and interests of customers," the Saudi central bank said in a statement on its website.
-waheedabbas@khaleejtimes.com


More news from Business
In-store shopping regains trust

Business

In-store shopping regains trust

What is happening now is that as Covid-19 cases continue to decline, residents are regaining confidence in in-store shopping. This is according to a Kearney study in which UAE respondents cite convenience (51 per cent), enhanced shopping experience (49 per cent) and competitive pricing (44 per cent) as the main motivators driving them back to brick and mortar stores

Business4 days ago